Quote:
Originally Posted by Acting Like Godot  For the banks, the government has lots of complicated rules. But the basic idea is that generally for every business transaction that the bank gets itself into, it should set aside a certain amount of money, as "backup" money, in case the transaction goes wrong. |
Yes, I follow.
And, of course, the money that serves as those capital reserves is printed by the Central Bank, which is ... not really a bank, at its sole discretion. Got it.
The point is that several major countries of Europe are deeply in debt (including Italy, with the 3rd largest economy of them all), and the Central Bank just keeps printing money and bailing out these flagging economies. So, I'm asking, what is that likely to lead to, and is it ever going to stop?
Unlike Central Banks, if Beingist is maxed out on his debt, he doesn't have the luxury to simply print up more money.